Jump to Section
A Durable Power of Attorney for Finances is a legal document that allows you to appoint someone to make financial decisions on your behalf, if unable to do so. It's an essential part of financial planning that can help protect your interests and ensure your wishes are carried out. This document is critical because it allows your agent to act on your behalf and make important financial decisions for you when you cannot. Here's what you need to know about durable power of attorney for finances.
Importance of Durable Power of Attorney for Finances
A durable power of attorney for finances is essential because it enables you to appoint someone you trust to manage your financial affairs if you become incapacitated. If you do not have this document, your loved ones may have to go through a lengthy and expensive legal process to obtain the authority to manage your finances. With a durable power of attorney for finances, you can ensure that your financial affairs are managed by someone you trust and avoid the need for a court-appointed conservatorship.
How to Create a Durable Power of Attorney for Finances
Creating a durable power of attorney for finances is relatively simple. You need to identify an agent or attorney-in-fact who will manage your finances if you become incapacitated. You also need to decide on the scope of the agent's authority and the duration of the power of attorney.
Once you have identified the agent and the scope of the power of attorney, you need to draft the document and have it signed and notarized. It is essential to work with an attorney to ensure that the document is legally binding and meets all the legal requirements in your state.
What to Consider When Choosing an Agent
Choosing the right agent for your durable power of attorney for finances is critical. You need to appoint someone who is trustworthy, responsible, and capable of managing your finances. It is also essential to choose someone who is willing to take on the responsibility of managing your finances and making decisions on your behalf. When choosing an agent, consider their financial knowledge and experience, their availability, and their ability to work with other family members or professionals.
How to Revoke a Durable Power of Attorney for Finances
Revoking a Durable Power of Attorney for Finances is a relatively straightforward process, but it's essential to follow the proper legal steps to ensure that the revocation is valid. Here are the steps to follow:
- Draft a Revocation Form: The first step in revoking a Durable Power of Attorney for Finances is to draft a revocation form. The form should include your name, the name of the agent, the date the original document was signed, and a statement indicating that you are revoking the power of attorney.
- Sign and Date the Form: Once you have drafted the revocation form, you must sign and date it in the presence of a notary public. This step is crucial as it provides legal evidence that you have voluntarily and knowingly revoked the power of attorney.
- Inform the Agent: After signing the revocation form, you must inform the agent in writing that the power of attorney has been revoked. This notification can be sent by certified mail or served in person. You should keep a copy of the revocation form and the notification letter for your records.
- Notify Financial Institutions: It's essential to notify any financial institutions or third parties that may have a copy of the Durable Power of Attorney for Finances that it has been revoked. This step ensures that the agent cannot continue to act on your behalf after the revocation.
- Update your Estate Plan: Finally, it's important to update your estate plan after revoking a Durable Power of Attorney for Finances. This may include updating your will, trust, or other documents to reflect the changes in your wishes and preferences.
Legal Considerations for Durable Power of Attorney for Finances
When it comes to creating a durable power of attorney for finances, it's important to ensure that the legal considerations are taken into account. Here are some key legal considerations to keep in mind:
- Capacity: The person creating the durable power of attorney for finances must have the capacity to understand the nature and effect of the document they are signing. This means that they must be of sound mind, able to understand the consequences of their actions, and not be under any undue influence or duress.
- Authority: The person designated as the agent under the durable power of attorney for finances must have the legal authority to act on behalf of the principal. This means that they must be at least 18 years of age, not be incapacitated themselves, and not have any conflicts of interest.
- Specificity: The durable power of attorney for finances must be specific in its terms and scope. It should clearly identify what powers the agent has and what actions they are authorized to take. This helps to avoid any confusion or disputes that may arise later on.
- Revocation: The person creating the durable power of attorney for finances must have the legal right to revoke or cancel the document at any time. This can be done by simply notifying the agent in writing or by executing a new power of attorney that revokes the previous one.
- Witnessing and Notarization: Depending on the state, the durable power of attorney for finances may need to be witnessed and notarized in order to be legally valid. It's important to check with a local attorney or notary public to ensure that all legal requirements are met.
By taking these legal considerations into account when creating a durable power of attorney for finances, you can help ensure that the document is legally valid and that the interests of the principal are protected.
Key Terms for Durable Power of Attorney for Finances
- Principal: The person who creates the durable power of attorney for finances and authorizes someone to act on their behalf in financial matters.
- Agent: The person who is authorized to act on behalf of the principal in financial matters.
- Authority: The power or permission granted by the principal to the agent to act on their behalf in financial matters.
- Revocation: The process of canceling or ending a durable power of attorney for finances by the principal.
- Capacity: The legal ability of the principal to create a durable power of attorney for finances and make financial decisions.
Final Thoughts on Durable Power of Attorney for Finances
A durable power of attorney for finances is an important piece of document that enables you to appoint someone to manage your finances if you become incapacitated. By creating this document, you can ensure that your financial affairs are managed by someone you trust and avoid the need for a court-appointed conservatorship. It is essential to work with an attorney to create a durable power of attorney for finances that is legally binding and meets all the legal requirements in your state.
If you want free pricing proposals from vetted lawyers that are 60% less than typical law firms, click here to get started. By comparing multiple proposals for free, you can save the time and stress of finding a quality lawyer for your business needs.
Need help with a Durable Power of Attorney for Finances?
Meet some of our Durable Power of Attorney for Finances Lawyers
Sarah S.
With 20 years of transactional law experience, I have represented corporate giants like AT&T and T-Mobile, as well as mid-size and small businesses across a wide spectrum of legal needs, including business purchase agreements, entity formation, employment matters, commercial and residential real estate transactions, partnership agreements, online business terms and policy drafting, and business and corporate compliance. Recognizing the complexities of the legal landscape, I am dedicated to providing accessible and transparent legal services by offering a flat fee structure, making high-quality legal representation available to all. My extensive knowledge and commitment to client success establishes me as a trusted advisor for businesses of all sizes.
Christopher R.
Corporate and transactional attorney in sixth year of practice. Focus areas include general corporate counsel, labor and employment law, business partnership matters, securities matters related to privately-held companies, and regulatory compliance in securities and finance matters.
Benjamin E.
Benjamin is an attorney specializing in Business, Intellectual Property, Employment and Real Estate.
Howard B.
Berkson is a dedicated, practical, and detail-oriented attorney licensed to practice in every state court of Oklahoma and the United States Northern and Eastern District Courts. He graduated from the University of Tulsa College of Law with Honors. While there, he received awards for highest grade in trial practice, legal research, and civil procedure. He was also the Executive Notes and Comments Editor for the Energy Law Journal, the official journal of the Energy Bar Association in Washington, D.C. The Energy Law Journal is one of the few peer-reviewed journals in the legal profession. Prior to becoming an attorney, Howard Berkson held executive positions involving a wide range of business and human resources management functions. He has in-depth knowledge of both business and HR practices. During his business career, Berkson negotiated, wrote, red-lined, and disputed contracts. He has answered charges, handled inspections, and supervised audits involving numerous agencies including the Department of Labor, the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, and various state agencies. Berkson honed his analytical and writing skills while earning his Bachelor of Arts degree in Philosophy from the University of Washington. He went on to obtain a Master of Arts in Labor and Industrial Relations from the University of Illinois. Berkson’s work can be found in such publications as The Energy Law Journal, Human Resource Management Review and Personnel Psychology. He is a member of Phi Alpha Delta law fraternity and of Phi Kappa Phi honor society.
Gill D.
Erik has been a practicing attorney in Florida for over a decade. He specializes in employment and real estate contracts. He has represented clients big and small and can assist with any contract issue.
Domonick G.
I am a licensed attorney who specializes in business law, personal injury and contracts.
September 4, 2022
Deborah W.
Williamson Health Law is an established and trusted law firm focused on representing hospitals, health plans, physician groups, physicians, physical therapy businesses, psychologists and other health care providers and businesses in all aspects of health law. including the Stark law, the Anti-Kickback Statute (“AKS”), the Health Insurance Portability and Accountability Act (“HIPAA”), regulatory compliance, Medicare and Blue Cross audits and overpayment appeals, payer departicipation and disaffiliation appeals, payer and provider disputes, reimbursement and billing, compliance plans, health care industry contracts and professional licensure. We represent clients throughout Michigan and the U.S. with certain federal matters such as federal regulatory analysis and Medicare audits.
Find the best lawyer for your project
Browse Lawyers NowEstate Planning
Durable Power of Attorney for Finances
Illinois
What’s the Difference between General POA and Durable POA
I’m trying to get POA over my Mother Financial because she not Paying the Mortgage which is past over due along with some Bills she hasn’t paid on in months I don’t us to lose our home and she suffers from Dementia and we Both recently suffered from a stroke I would appreciate if you respond to my message beside With a Hi There !
T. Phillip B.
I'm not a fan of either term as I find they just confuse things. Durable usually is referring that it remains effective after incapacity. Sometimes general is looked at as terminating at becoming incapacitated. Another term which comes up is springing which this one makes more sense where it isn't effective immediately but upon a date or occurrence (usually someone being deemed incapacitated). I don't think I'd ever create a POA where it terminates at incapacity since that's when I'd need it to work. Now you say your mother has dementia. Will she understand what she is signing and the purpose of the document? If not, she doesn't have the required mental capacity to establish a POA and will have to have a guardian appointed by the court.
Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.
View Trustpilot ReviewNeed help with a Durable Power of Attorney for Finances?
Family lawyers by top cities
- Austin Family Lawyers
- Boston Family Lawyers
- Chicago Family Lawyers
- Dallas Family Lawyers
- Denver Family Lawyers
- Houston Family Lawyers
- Los Angeles Family Lawyers
- New York Family Lawyers
- Phoenix Family Lawyers
- San Diego Family Lawyers
- Tampa Family Lawyers
Durable Power of Attorney for Finances lawyers by city
- Austin Durable Power of Attorney for Finances Lawyers
- Boston Durable Power of Attorney for Finances Lawyers
- Chicago Durable Power of Attorney for Finances Lawyers
- Dallas Durable Power of Attorney for Finances Lawyers
- Denver Durable Power of Attorney for Finances Lawyers
- Houston Durable Power of Attorney for Finances Lawyers
- Los Angeles Durable Power of Attorney for Finances Lawyers
- New York Durable Power of Attorney for Finances Lawyers
- Phoenix Durable Power of Attorney for Finances Lawyers
- San Diego Durable Power of Attorney for Finances Lawyers
- Tampa Durable Power of Attorney for Finances Lawyers
ContractsCounsel User
Health
Location: District of Columbia
Turnaround: Less than a week
Service: Drafting
Doc Type: Power of Attorney
Number of Bids: 2
Bid Range: $850 - $900
ContractsCounsel User